EUR/USD Price Forecast – the Euro struggles at resistance

The Euro initially tried to rally during the trading session on Tuesday, reaching towards the 1.1450 level. However, we gave back quite a bit of the gains and I think that the market is likely to pull back a bit to build up some more momentum. The market is starting to form out a consolidation area, so it’s likely that we will continue to go back and forth as we try to build up enough momentum. However, the 200 day EMA above is coming into the picture near the 1.15 level, so I do think the market will need to build up a significant amount of momentum to finally make that move.

EUR/USD Forecast Video 30.01.19

Ultimately, I think we need to see the US dollar fall apart for this market to make a move. After all, the European Union doesn’t have much in the way of positivity right now, as it is the laggard when it comes to major economies and growth right now. However, the Federal Reserve looks likely to soften its stance even further, and if that is going to be the case it’s likely that the Euro could be a beneficiary by proxy. I think that the 1.13 level underneath is a hard floor in the market, but if we can get a break above the 200 day EMA, then I think the market goes much higher, perhaps to the 1.18 level which is my longer-term target. I do think though that it is going to take a lot of work and quite a bit of time to get there.